74R9535 PB-D
By Jackson, Eiland H.B. No. 1589
Substitute the following for H.B. No. 1589:
By Brady C.S.H.B. No. 1589
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the provision of workers' compensation benefits for
1-3 certain state employees and to the creation, powers, and duties of
1-4 the State Office of Risk Management.
1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-6 SECTION 1. Chapter 412, Labor Code, is amended to read as
1-7 follows:
1-8 CHAPTER 412. <DIVISION OF> RISK MANAGEMENT
1-9 SUBCHAPTER A. GENERAL PROVISIONS
1-10 Sec. 412.001. DEFINITIONS. In this chapter:
1-11 (1) "Board" means the risk management board.
1-12 (2) "Director" means the executive director of the
1-13 office <division>.
1-14 (3) <(2)> "Office" <"Division"> means the State Office
1-15 of Risk Management <division of risk management of the commission>.
1-16 (4) <(3)> "State agency" means a board, commission,
1-17 department, office, or other agency in the executive, judicial, or
1-18 legislative branch of state government that has five or more
1-19 employees, was created by the constitution or a statute of this
1-20 state, and has authority not limited to a specific geographical
1-21 portion of the state. The term includes an institution of higher
1-22 education as defined by Section 61.003, Education Code.
1-23 (Sections 412.002-412.010 reserved for expansion
1-24 SUBCHAPTER B. STATE OFFICE OF RISK MANAGEMENT
2-1 Sec. 412.011. OFFICE; BOARD. (a) The Office of Risk
2-2 Management is created to administer the workers' compensation
2-3 program for state employees. The office is governed by the risk
2-4 management board. Members of the board must have demonstrated
2-5 experience in the field of workers' compensation and risk
2-6 management administration.
2-7 (b) The board is composed of six members as follows:
2-8 (1) three members appointed by the lieutenant
2-9 governor; and
2-10 (2) three members appointed by the speaker of the
2-11 house of representatives.
2-12 (c) Members of the board hold office for staggered terms of
2-13 six years with two members' terms expiring February 1 of each
2-14 odd-numbered year. A member appointed to fill a vacancy shall hold
2-15 office for the remainder of that term.
2-16 (d) The lieutenant governor and speaker of the house of
2-17 representatives shall designate one member of the board as
2-18 presiding officer on an alternating basis. The presiding officer
2-19 shall serve in that capacity for a two-year term.
2-20 (e) The board is subject to Chapters 552 and 2001,
2-21 Government Code.
2-22 (f) The board is subject to Chapter 325, Government Code
2-23 (Texas Sunset Act). Unless continued in existence as provided by
2-24 that chapter, the board is abolished and this section expires
2-25 September 1, 2007.
2-26 Sec. 412.012. TRAINING PROGRAM FOR BOARD MEMBERS. (a)
2-27 Before a member of the board may assume the member's duties, the
3-1 member must complete the training program established under this
3-2 section.
3-3 (b) A training program established under this section must
3-4 provide information to the member regarding:
3-5 (1) the enabling legislation that created the board;
3-6 (2) the programs operated by the board;
3-7 (3) the role and functions of the board;
3-8 (4) the rules of the board, with an emphasis on the
3-9 rules that relate to disciplinary and investigatory authority;
3-10 (5) the current budget for the board;
3-11 (6) the results of the most recent formal audit of the
3-12 board;
3-13 (7) the requirements of:
3-14 (A) the open meetings law, Chapter 551,
3-15 Government Code;
3-16 (B) the open records law, Chapter 552,
3-17 Government Code; and
3-18 (C) the administrative procedure law, Chapter
3-19 2001, Government Code;
3-20 (8) the requirements of the conflict of interest laws
3-21 and other laws relating to public officials; and
3-22 (9) any applicable ethics policies adopted by the
3-23 board or the Texas Ethics Commission.
3-24 Sec. 412.013. EFFECT OF LOBBYING ACTIVITY. A person may not
3-25 serve as a member of the board or act as the general counsel to the
3-26 board if the person is required to register as a lobbyist under
3-27 Chapter 305, Government Code, because of the person's activities
4-1 for compensation on behalf of a profession that is regulated by or
4-2 that has fees regulated by the board.
4-3 Sec. 412.014. GROUNDS FOR REMOVAL FROM BOARD. (a) It is a
4-4 ground for removal from the board if a member:
4-5 (1) does not have at the time of appointment the
4-6 qualifications required for appointment to the board;
4-7 (2) does not maintain during service on the board the
4-8 qualifications required for appointment to the board;
4-9 (3) violates a prohibition established by
4-10 Section 412.013;
4-11 (4) cannot because of illness or incapacity discharge
4-12 the member's duties for a substantial part of the term for which
4-13 the member is appointed; or
4-14 (5) is absent from more than half of the regularly
4-15 scheduled board meetings that the member is eligible to attend
4-16 during a calendar year.
4-17 (b) If the director knows that a potential ground for
4-18 removal exists, the director shall notify the presiding officer of
4-19 the board of the potential ground. The presiding officer shall
4-20 then notify the lieutenant governor, speaker of the house of
4-21 representatives, and the attorney general that a potential ground
4-22 for removal exists. If the potential ground for removal involves
4-23 the presiding officer, the director shall notify the next highest
4-24 officer of the board, who shall notify the lieutenant governor,
4-25 speaker of the house of representatives, and the attorney general
4-26 that a potential ground for removal exists.
4-27 Sec. 412.015. RULES. The board shall adopt rules as
5-1 necessary to implement this chapter.
5-2 Sec. 412.016. STAFF; DIRECTOR. (a) The office is
5-3 administratively attached to the commission, and the basic staff
5-4 and necessary facilities that are required to administer this
5-5 chapter shall be the staff and facilities of the commission. The
5-6 commission staff shall act as the agents of the board. If
5-7 necessary to the administration of this chapter, the board by
5-8 agreement may secure and provide for compensation for services that
5-9 it considers necessary and may employ and compensate within
5-10 available appropriations professional consultants, technical
5-11 assistants, and employees on a full-time or part-time basis.
5-12 (b) The board shall appoint a qualified person to serve as
5-13 director of the office. The director serves at the pleasure of the
5-14 board. In addition to other duties provided by this chapter and by
5-15 the board, the director shall:
5-16 (1) keep full and accurate minutes of the transactions
5-17 and proceedings of the board;
5-18 (2) be the custodian of the files and records of the
5-19 board;
5-20 (3) prepare and recommend to the board plans and
5-21 procedures necessary to implement the purposes and objectives of
5-22 this chapter, including rules and proposals or administrative
5-23 procedures consistent with this chapter;
5-24 (4) exercise general supervision over persons employed
5-25 by the commission in the administration of this chapter;
5-26 (5) be responsible for the investigation of complaints
5-27 and for the presentation of formal complaints;
6-1 (6) attend all meetings of the board as a nonvoting
6-2 participant; and
6-3 (7) handle the correspondence of the board and obtain,
6-4 assemble, or prepare the reports and information that the board may
6-5 direct or authorize.
6-6 (Sections 412.017-412.030 reserved for expansion
6-7 SUBCHAPTER C. RISK MANAGEMENT ADMINISTRATION
6-8 Sec. 412.031. PROVISIONAL <Sec. 412.002.> EXEMPTION OF
6-9 CERTAIN STATE AGENCIES; REPORT. (a) Except as provided by
6-10 Subsections (b) and (c), this <This> chapter does not apply to a
6-11 state agency that had medical malpractice insurance coverage,
6-12 workers' compensation insurance coverage, or other self-insurance
6-13 coverage with associated risk management programs before January 1,
6-14 1989.
6-15 (b) Each state agency shall comply with the annual report
6-16 requirement imposed under Section 412.035.
6-17 (c) The office shall evaluate biennially the effectiveness
6-18 of the risk management program operated by a state agency that is
6-19 exempt under Subsection (a). If, based on that evaluation, the
6-20 director determines that the program operated by the state agency
6-21 is not effective in reducing losses, the director shall revoke the
6-22 exemption granted under this section, and the state agency shall
6-23 comply with the requirements of this chapter on notification by the
6-24 director that the exemption has been revoked.
6-25 Sec. 412.032. DUTIES OF STATE AGENCIES. Each state agency
6-26 subject to this chapter shall actively manage the risks of that
6-27 agency by developing, implementing, and maintaining health and
7-1 safety programs and programs designed to assist employees who
7-2 sustain compensable injuries to return to work.
7-3 Sec. 412.033 <412.003>. DUTIES OF OFFICE <DIVISION>.
7-4 (a) The office <division> shall:
7-5 (1) administer guidelines adopted by the board
7-6 <commission> for a comprehensive risk management program applicable
7-7 to all state agencies to reduce property and liability losses,
7-8 including workers' compensation losses; and
7-9 (2) review, verify, monitor, and approve risk
7-10 management programs adopted by state agencies.
7-11 (b) The office <division> shall assist a state agency that
7-12 has not implemented an effective risk management program to
7-13 implement a comprehensive program that meets the <division>
7-14 guidelines established by the board.
7-15 (c) The office shall administer the workers' compensation
7-16 insurance program for state employees established under Chapter
7-17 501.
7-18 Sec. 412.034 <412.004>. STATE RISK MANAGER. (a) The
7-19 director serves as the state risk manager.
7-20 (b) The director shall supervise the development and
7-21 administration of systems to:
7-22 (1) identify the property and liability losses,
7-23 including workers' compensation losses, of each state agency;
7-24 (2) identify the administrative costs of risk
7-25 management incurred by each state agency;
7-26 (3) identify and evaluate the exposure of each state
7-27 agency to claims for property and liability losses, including
8-1 workers' compensation; and
8-2 (4) reduce the property and liability losses,
8-3 including workers' compensation, incurred by each state agency.
8-4 Sec. 412.035 <412.005>. ANNUAL REPORT BY STATE AGENCY.
8-5 (a) Each state agency shall report to the director for each fiscal
8-6 year:
8-7 (1) the location, timing, frequency, severity, and
8-8 aggregate amounts of losses by category of risk, including open and
8-9 closed claims and final judgments;
8-10 (2) loss information obtained by the state agency
8-11 <workers' compensation division of the attorney general's office>
8-12 in the course of its administration of the workers' compensation
8-13 program <for state agencies>;
8-14 (3) detailed information on existing and potential
8-15 exposures to loss, including property location and values,
8-16 descriptions of agency operations, and estimates of maximum
8-17 probable and maximum possible losses by category of risk;
8-18 (4) estimates by category of risk of losses incurred
8-19 but not reported;
8-20 (5) information the director determines necessary to
8-21 prepare a Texas Workers' Compensation Unit Statistical Report; and
8-22 (6) additional information that the director
8-23 determines to be necessary.
8-24 (b) The information shall be reported on or before 60 days
8-25 after the close of each fiscal year.
8-26 (c) For the purposes of this section, "state agency"
8-27 includes:
9-1 (1) The University of Texas System;
9-2 (2) The Texas A&M University System;
9-3 (3) an institution under the direction and control of
9-4 the board of regents of Texas Tech University; and
9-5 (4) the Texas Department of Transportation.
9-6 Sec. 412.036 <412.006>. RULEMAKING AUTHORITY. (a) The
9-7 board <commission> may adopt rules as necessary to implement this
9-8 chapter, including rules relating to reporting requirements for a
9-9 state agency.
9-10 (b) Notwithstanding Section 402.061, the commission may not
9-11 adopt rules relating to the implementation of this chapter.
9-12 Sec. 412.037 <412.007>. BOARD'S <COMMISSION'S> REPORT TO
9-13 LEGISLATURE. (a) Based on the recommendations of the director,
9-14 the board <commission> shall report to each legislature relating
9-15 to:
9-16 (1) methods to reduce the exposure of state agencies
9-17 to the risks of property and liability losses, including workers'
9-18 compensation losses;
9-19 (2) the operation, financing, and management of those
9-20 risks; and
9-21 (3) the handling of claims brought against the state.
9-22 (b) The report must include:
9-23 (1) the frequency, severity, and aggregate amount of
9-24 open and closed claims in the preceding biennium by category of
9-25 risk, including final judgments;
9-26 (2) the identification of each state agency that has
9-27 not complied with the risk management guidelines and reporting
10-1 requirements of this chapter; and
10-2 (3) recommendations for the coordination and
10-3 administration of a comprehensive risk management program to serve
10-4 all state agencies, including recommendations for any necessary
10-5 statutory changes.
10-6 Sec. 412.038 <412.008>. INTERAGENCY CONTRACTS. (a) Each
10-7 state agency shall enter into an interagency contract with the
10-8 office and the commission under Chapter 771, Government Code, to
10-9 pay the costs incurred by the office and the commission in
10-10 administering this chapter for the benefit of that state agency.
10-11 Costs payable under the contract include the cost of:
10-12 (1) services of office and commission employees;
10-13 (2) materials; and
10-14 (3) equipment, including computer hardware and
10-15 software.
10-16 (b) The amount of the costs to be paid by a state agency
10-17 under the interagency contract is based on:
10-18 (1) the number of employees of the agency compared
10-19 with the total number of employees of all state agencies to which
10-20 this chapter applies;
10-21 (2) the dollar value of the agency's property and
10-22 asset and liability exposure compared to that of all state agencies
10-23 to which this chapter applies; and
10-24 (3) the number and aggregate cost of claims and losses
10-25 incurred by the agency compared to those incurred by all state
10-26 agencies to which this chapter applies.
10-27 SECTION 2. Section 402.021(a), Labor Code, is amended to
11-1 read as follows:
11-2 (a) The commission shall have:
11-3 (1) a division of workers' health and safety;
11-4 (2) a division of medical review;
11-5 (3) a division of compliance and practices; and
11-6 (4) a division of hearings<; and>
11-7 <(5) a division of risk management>.
11-8 SECTION 3. Section 403.003(b), Labor Code, is amended to
11-9 read as follows:
11-10 (b) In setting the rate of assessment, the commission may
11-11 not consider revenue or expenditures related to:
11-12 (1) the State Office of Risk Management <division of
11-13 risk management>;
11-14 (2) the research center; or
11-15 (3) any other revenue or expenditure excluded from
11-16 consideration by law.
11-17 SECTION 4. Section 501.001, Labor Code, is amended by
11-18 amending Subdivisions (3) and (4) and by adding Subdivision (7) to
11-19 read as follows:
11-20 (3) "Director" means the director of the State Office
11-21 of Risk Management <workers' compensation division of the attorney
11-22 general's office>.
11-23 (4) "Office" <"Division"> means the State Office of
11-24 Risk Management <workers' compensation division of the attorney
11-25 general's office>.
11-26 (7) "Board" means the risk management board.
11-27 SECTION 5. Sections 501.002(b) and (c), Labor Code, are
12-1 amended to read as follows:
12-2 (b) For the purposes of this chapter and Chapter 451, the
12-3 individual state agency shall be considered the employer.
12-4 (c) For the purpose of applying the provisions listed by
12-5 Subsection (a) to this chapter, "insurer" or "employer" means
12-6 "state," "office," <"division," or> "director," or "state agency,"
12-7 as applicable.
12-8 SECTION 6. Section 501.003(a), Labor Code, is amended to
12-9 read as follows:
12-10 (a) The provisions of this chapter and the rules of the
12-11 board <director> affecting an employee also apply to the legal
12-12 beneficiary of a deceased employee.
12-13 SECTION 7. Subchapter B, Chapter 501, Labor Code, is amended
12-14 by adding Section 501.0215 to read as follows:
12-15 Sec. 501.0215. MAINTENANCE OF EMPLOYEE ON PAYROLL. (a) A
12-16 state agency shall maintain an employee who incurs a compensable
12-17 injury on the agency's payroll until the 31st day after the first
12-18 day on which the employee is unable to work because of the
12-19 compensable injury. On the expiration of the 30-day period, the
12-20 employee may elect to use accrued annual and sick leave before
12-21 receiving income benefits as provided by Section 501.044.
12-22 (b) The requirement imposed under Subsection (a) does not
12-23 affect:
12-24 (1) the employee's entitlement to benefits under this
12-25 chapter; or
12-26 (2) the employing agency's duty to report the injury
12-27 under Chapters 409 and 412.
13-1 SECTION 8. Section 501.022, Labor Code, is amended to read
13-2 as follows:
13-3 Sec. 501.022. TEXAS TECH UNIVERSITY EMPLOYEES. (a) An
13-4 eligible employee of Texas Tech University, Texas Tech University
13-5 Health Sciences Center <Research Farm, Texas Tech University School
13-6 of Medicine at Lubbock>, or another agency under the direction and
13-7 control of the board of regents of Texas Tech University and Texas
13-8 Tech University Health Sciences Center is entitled to participate
13-9 in the workers' compensation program for state employees provided
13-10 under this chapter.
13-11 (b) For purposes of this chapter, Texas Tech University is a
13-12 state agency and shall act in the capacity of employer.
13-13 (c) For purposes of this chapter, Texas Tech University
13-14 Health Sciences Center is a state agency and shall act in the
13-15 capacity of employer.
13-16 SECTION 9. Section 501.023, Labor Code, is amended to read
13-17 as follows:
13-18 Sec. 501.023. STATE SELF-INSURING; ALLOCATION PROGRAM FOR
13-19 FINANCING OF STATE WORKERS' COMPENSATION BENEFITS. (a) The state
13-20 is self-insuring with respect to an employee's compensable injury.
13-21 The legislature shall appropriate the total amount designated for
13-22 the payment of state workers' compensation claims costs to the
13-23 office. This section does not affect the reimbursement of claims
13-24 costs by funds other than general revenue funds, as provided by the
13-25 General Appropriations Act.
13-26 (b) The office shall establish an allocation program for the
13-27 payment of workers' compensation claims costs incurred by state
14-1 agencies subject to this chapter. The money appropriated by the
14-2 legislature for workers' compensation for state employees shall be
14-3 allocated under that program as provided by this section.
14-4 (c) Based on the information reported to the office under
14-5 Sections 412.035 and 501.048, at the beginning of each state fiscal
14-6 biennium the office shall determine which state agencies accounted
14-7 for 90 percent of the state's workers' compensation claims costs
14-8 for the preceding state fiscal biennium. Those state agencies are
14-9 required to participate in the allocation program for the next
14-10 state fiscal biennium. The office shall establish a formula for
14-11 allocating the state's workers' compensation costs among those
14-12 agencies, based on the claims experience of the agencies and the
14-13 related costs incurred for administering the claims.
14-14 (d) A state agency that is required to participate in the
14-15 allocation program shall be rewarded or penalized for its actual
14-16 performance against expected workers' compensation losses as
14-17 provided by this section.
14-18 (e) The office shall receive the amount appropriated for
14-19 workers' compensation claims. The office shall:
14-20 (1) monitor workers' compensation expenses incurred by
14-21 each state agency required to participate in the allocation
14-22 program; and
14-23 (2) compare and report to each of those agencies the
14-24 difference between the allocated amount and the agency's actual
14-25 expenses for workers' compensation.
14-26 (f) If, based on the comparison performed under Subsection
14-27 (e)(2), the office determines that an agency's performance resulted
15-1 in workers' compensation claims costs that were higher than the
15-2 amount allocated to that agency, the agency is not entitled to
15-3 additional state funds for those costs beyond the initial
15-4 allocation and shall pay the additional costs from the agency's
15-5 regular appropriated funds as listed in the General Appropriations
15-6 Act. The agency shall reimburse the office for the additional
15-7 costs through interagency contracts, from the agency's regular
15-8 appropriated funds.
15-9 (g) If, based on the comparison performed under Subsection
15-10 (e)(2), the office determines that an agency's performance resulted
15-11 in workers' compensation claims costs that were lower than the
15-12 amount allocated to that agency, the agency is entitled to retain a
15-13 portion of the savings. The office shall determine the amount of
15-14 the savings that the agency may retain.
15-15 (h) A state agency that is determined by the office to be
15-16 exempt from participation in the allocation program shall receive
15-17 full coverage for workers' compensation costs incurred by that
15-18 agency from the office.
15-19 SECTION 10. Section 501.041, Labor Code, is amended to read
15-20 as follows:
15-21 Sec. 501.041. ADMINISTRATION OF WORKERS' COMPENSATION
15-22 <DIVISION; DIRECTOR>. (a) <The attorney general shall maintain a
15-23 division of workers' compensation to administer this chapter.>
15-24 <(b) The attorney general shall appoint a director to act as
15-25 chief executive and administrative officer of the division.>
15-26 <(c) The attorney general shall provide the director with
15-27 office space and sufficient personnel to administer this chapter.>
16-1 <(d)> The office <director> shall administer this chapter
16-2 with money appropriated by the legislature.
16-3 (b) The board <(e) With the approval of the attorney
16-4 general, the director> may contract with a company authorized to do
16-5 business in this state for any or all of the administrative
16-6 services required by this chapter. A contract awarded under this
16-7 subsection shall be awarded on the basis of competitive bidding by
16-8 qualified companies.
16-9 SECTION 11. Section 501.042, Labor Code, is amended to read
16-10 as follows:
16-11 Sec. 501.042. DIRECTOR AS <EMPLOYER AND> INSURER. (a) In
16-12 administering and enforcing this chapter, the director shall act in
16-13 the capacity of <employer and> insurer.
16-14 (b) The director shall act as an adversary before the
16-15 commission and courts and present the legal defenses and positions
16-16 of the state as an <employer and> insurer.
16-17 (c) For the purposes of this section, the director is
16-18 entitled to the legal counsel of the attorney general.
16-19 (d) In the capacity of insurer, the <The> director is
16-20 subject to the rules, orders, and decisions of the commission in
16-21 the same manner as any other <a private employer,> insurer<,> or
16-22 association.
16-23 SECTION 12. Section 501.043, Labor Code, is amended to read
16-24 as follows:
16-25 Sec. 501.043. <DIRECTOR'S> POWERS AND DUTIES OF BOARD AND
16-26 DIRECTOR. (a) The board <director> shall<:>
16-27 <(1)> adopt procedural rules and prescribe forms
17-1 necessary for the effective administration of this chapter<; and>
17-2 <(2) adopt and enforce reasonable rules for the
17-3 prevention of accidents and injuries>.
17-4 (b) The director shall hold hearings on all proposed rules
17-5 and provide reasonable opportunity for the officers of state
17-6 agencies to testify at hearings on all proposed rules under this
17-7 section.
17-8 (c) The director shall furnish copies of all rules to the
17-9 commission and to the administrative heads of all state agencies
17-10 affected by this chapter.
17-11 SECTION 13. Section 501.044, Labor Code, is amended to read
17-12 as follows:
17-13 Sec. 501.044. Effect of Annual and Sick Leave. An employee
17-14 may elect to use accrued annual and sick leave before receiving
17-15 income benefits. If an employee elects to use annual and sick
17-16 leave, medical services remain available to the employee, but the
17-17 employee is not entitled to income benefits under this chapter
17-18 until the employee has exhausted the employee's accrued annual and
17-19 sick leave.
17-20 SECTION 14. Section 501.046, Labor Code, is amended to read
17-21 as follows:
17-22 Sec. 501.046. REPORTS OF TERMINATION OR CONTINUATION OF
17-23 INJURIES. In addition to other reports required by the board
17-24 <commission>, the director shall file a subsequent report not later
17-25 than the 10th day after the date of the termination of the injured
17-26 employee's incapacity. If the employee's incapacity extends beyond
17-27 60 days, the director shall file a subsequent report before the
18-1 70th day after the date the employee's incapacity began.
18-2 SECTION 15. Section 501.048, Labor Code, is amended to read
18-3 as follows:
18-4 Sec. 501.048. STATE AGENCY SUMMARY IN BUDGET REQUESTS. Each
18-5 state agency shall submit in the administrative statement of its
18-6 biennial budget request a summary containing:
18-7 (1) the number of first reports of injury filed by the
18-8 agency during the preceding biennium;
18-9 (2) the amount of workers' compensation indemnity and
18-10 medical benefits paid to or for employees during the preceding
18-11 biennium;
18-12 (3) the number of on-the-job injuries per 100 of its
18-13 employees during each year of the preceding biennium; and
18-14 (4) a description of the efforts made by the agency to
18-15 increase job safety and to reduce job injuries, including the
18-16 participation of the head of the agency and the executive staff of
18-17 the agency in training programs offered by the office <division>
18-18 and others.
18-19 SECTION 16. Section 502.002(a), Labor Code, is amended to
18-20 read as follows:
18-21 (a) The following provisions of Subtitle A apply to and are
18-22 included in this chapter except to the extent that they are
18-23 inconsistent with this chapter:
18-24 (1) Chapter 401, other than Section 401.012 defining
18-25 "employee";
18-26 (2) Chapter 402;
18-27 (3) Chapter 403, other than Sections 403.001-403.005;
19-1 (4) Chapter 405;
19-2 (5) Sections 406.031-406.033; Subchapter D, Chapter
19-3 406; Sections 406.092 and 406.093;
19-4 (6) Chapter 408, other than Sections 408.001(b) and
19-5 (c);
19-6 (7) Chapters 409 and 410;
19-7 (8) Subchapters A and G, Chapter 411, other than
19-8 Sections 411.003 and 411.004; <and>
19-9 (9) Chapters 412-417; and
19-10 (10) Chapter 451.
19-11 SECTION 17. Section 502.041, Labor Code, is amended to read
19-12 as follows:
19-13 Sec. 502.041. EFFECT <EXHAUSTION> OF ANNUAL AND SICK LEAVE.
19-14 <(a)> An <institution may provide that an injured> employee may
19-15 elect to use accrued <remain on the payroll until the employee's
19-16 earned> annual and sick leave before receiving income benefits. If
19-17 an employee elects to use annual and sick leave, medical services
19-18 remain available to the employee, but the employee is not entitled
19-19 to income benefits under this chapter until the employee has <is>
19-20 exhausted the employee's accrued annual and sick leave.
19-21 <(b) While an injured employee remains on the payroll under
19-22 Subsection (a), medical services remain available to the employee,
19-23 but workers' compensation benefits do not accrue or become payable
19-24 to the injured employee.>
19-25 SECTION 18. Subchapter C, Chapter 502, Labor Code, is
19-26 amended by adding Section 502.042 to read as follows:
19-27 Sec. 502.042. MAINTENANCE OF EMPLOYEE ON PAYROLL. (a) An
20-1 institution shall maintain an employee who incurs a compensable
20-2 injury on the institution's payroll until the 31st day after the
20-3 first day on which the employee is unable to work because of the
20-4 compensable injury. On the expiration of the 30-day period, the
20-5 employee may elect to use accrued annual and sick leave before
20-6 receiving income benefits as provided by Section 502.041.
20-7 (b) The requirement imposed under Subsection (a) does not
20-8 affect:
20-9 (1) the employee's entitlement to benefits under this
20-10 chapter; or
20-11 (2) the institution's duty to report the injury under
20-12 Chapters 409 and 412.
20-13 SECTION 19. Section 503.002(a), Labor Code, is amended to
20-14 read as follows:
20-15 (a) The following provisions of Subtitle A apply to and are
20-16 included in this chapter except to the extent that they are
20-17 inconsistent with this chapter:
20-18 (1) Chapter 401, other than Section 401.012 defining
20-19 "employee";
20-20 (2) Chapter 402;
20-21 (3) Chapter 403, other than Sections 403.001-403.005;
20-22 (4) Chapter 405;
20-23 (5) Sections 406.031-406.033; Subchapter D, Chapter
20-24 406; Sections 406.092 and 406.093;
20-25 (6) Chapter 408, other than Sections 408.001(b) and
20-26 (c);
20-27 (7) Chapters 409 and 410;
21-1 (8) Subchapters A and G, Chapter 411, other than
21-2 Sections 411.003 and 411.004; <and>
21-3 (9) Chapters 412-417; and
21-4 (10) Chapter 451.
21-5 SECTION 20. Section 503.041, Labor Code, is amended to read
21-6 as follows:
21-7 Sec. 503.041. EFFECT <EXHAUSTION> OF ANNUAL AND SICK LEAVE.
21-8 <(a)> An <institution may provide that an injured> employee may
21-9 elect to use accrued <remain on the payroll until the employee's
21-10 earned> annual and sick leave before receiving income benefits. If
21-11 an employee elects to use annual and sick leave, medical services
21-12 remain available to the employee, but the employee is not entitled
21-13 to income benefits under this chapter until the employee has <is>
21-14 exhausted the employee's accrued annual and sick leave.
21-15 <(b) While an injured employee remains on the payroll under
21-16 Subsection (a), the employee is entitled to medical benefits but
21-17 income benefits do not accrue.>
21-18 SECTION 21. Subchapter C, Chapter 503, Labor Code, is
21-19 amended by adding Section 503.042 to read as follows:
21-20 Sec. 503.042. MAINTENANCE OF EMPLOYEE ON PAYROLL. (a) An
21-21 institution shall maintain an employee who incurs a compensable
21-22 injury on the institution's payroll until the 31st day after the
21-23 first day on which the employee is unable to work because of the
21-24 compensable injury. On the expiration of the 30-day period, the
21-25 employee may elect to use accrued annual and sick leave before
21-26 receiving income benefits as provided by Section 503.041.
21-27 (b) The requirement imposed under Subsection (a) does not
22-1 affect:
22-2 (1) the employee's entitlement to benefits under this
22-3 chapter; or
22-4 (2) the institution's duty to report the injury under
22-5 Chapters 409 and 412.
22-6 SECTION 22. Subchapter B, Chapter 505, Labor Code, is
22-7 amended by adding Sections 505.014 and 505.015 to read as follows:
22-8 Sec. 505.014. EFFECT OF ANNUAL AND SICK LEAVE. An employee
22-9 may elect to use accrued annual and sick leave before receiving
22-10 income benefits. If an employee elects to use annual and sick
22-11 leave, medical services remain available to the employee, but the
22-12 employee is not entitled to income benefits under this chapter
22-13 until the employee has exhausted the employee's accrued annual and
22-14 sick leave.
22-15 Sec. 505.015. MAINTENANCE OF EMPLOYEE ON PAYROLL. (a) The
22-16 department shall maintain an employee who incurs a compensable
22-17 injury on the department's payroll until the 31st day after the
22-18 first day on which the employee is unable to work because of the
22-19 compensable injury. On the expiration of the 30-day period, the
22-20 employee may elect to use accrued annual and sick leave before
22-21 receiving income benefits as provided by Section 505.014.
22-22 (b) The requirement imposed under Subsection (a) does not
22-23 affect:
22-24 (1) the employee's entitlement to benefits under this
22-25 chapter; or
22-26 (2) the department's duty to report the injury under
22-27 Chapters 409 and 412.
23-1 SECTION 23. The following laws are repealed:
23-2 (1) Section 502.024, Labor Code;
23-3 (2) Section 502.064, Labor Code;
23-4 (3) Section 503.024, Labor Code;
23-5 (4) Section 503.064, Labor Code;
23-6 (5) Section 503.070, Labor Code; and
23-7 (6) Section 505.054, Labor Code.
23-8 SECTION 24. Except as provided by Section 25 of this Act,
23-9 the change in law made by this Act to Chapters 501, 502, 503, and
23-10 505, Labor Code, applies only to a claim for workers' compensation
23-11 benefits based on a compensable injury that occurs on or after
23-12 September 1, 1995. A claim based on a compensable injury that
23-13 occurs before that date is governed by the law in effect on the
23-14 date that the injury occurred, and the former law is continued in
23-15 effect for that purpose.
23-16 SECTION 25. The change in law made by the repeal by this Act
23-17 of Sections 502.024, 502.064, 503.024, 503.064, 503.070, and
23-18 505.054, Labor Code, applies to a claim for workers' compensation
23-19 benefits based on a compensable injury that occurred on or after
23-20 July 26, 1992, the effective date for implementation of the
23-21 Americans With Disabilities Act of 1990 (42 U.S.C. Section 12101 et
23-22 seq.). A claim based on a compensable injury that occurred before
23-23 that date is governed by the law in effect on the date that the
23-24 injury occurred, and the former law is continued in effect for that
23-25 purpose.
23-26 SECTION 26. (a) The division of workers' compensation in
23-27 the office of the attorney general and the division of risk
24-1 management in the Texas Workers Compensation Commission are
24-2 abolished on the effective date of this Act. All employees,
24-3 records, equipment, and supplies in the custody of those divisions,
24-4 as those divisions existed on August 31, 1995, shall be transferred
24-5 to the State Office of Risk Management not later than December 31,
24-6 1995.
24-7 (b) In making the initial appointments to the risk
24-8 management board, the lieutenant governor and the speaker of the
24-9 house of representatives shall each appoint:
24-10 (1) one member for a term expiring February 1, 1997;
24-11 (2) one member for a term expiring February 1, 1999;
24-12 and
24-13 (3) one member for a term expiring February 1, 2001.
24-14 (c) The lieutenant governor shall appoint the first
24-15 presiding officer to serve in that capacity for a term expiring
24-16 February 1, 1997.
24-17 SECTION 27. This Act takes effect September 1, 1995.
24-18 SECTION 28. The importance of this legislation and the
24-19 crowded condition of the calendars in both houses create an
24-20 emergency and an imperative public necessity that the
24-21 constitutional rule requiring bills to be read on three several
24-22 days in each house be suspended, and this rule is hereby suspended.